Oruka Therapeutics Reports $24.6 Million Net Loss in Q2 2025

Oruka Therapeutics, Inc. reported significant financial results for the second quarter of 2025, revealing a net loss of $24.6 million, compared to a net loss of $22.2 million for the same period in 2024. For the first half of 2025, the company incurred a total net loss of $45.6 million, which is a 55% increase from the $29.3 million loss recorded during the comparable period from February 6, 2024, to June 30, 2024. The increase in losses is attributed to higher operating expenses, which rose by 32% to $28.4 million in the second quarter, driven primarily by increased research and development costs.

In terms of cash flow, Oruka reported a net cash outflow of $44.0 million from operating activities for the first half of 2025, a significant increase from $11.2 million in the prior year. The company ended the quarter with cash, cash equivalents, and marketable securities totaling $351.5 million, which management believes will be sufficient to fund operations for at least the next twelve months. The increase in cash was bolstered by $200.1 million in proceeds from the maturities of marketable securities, offset by $152.3 million in new purchases.

Operationally, Oruka has made strides in its clinical development pipeline, particularly with its lead programs, ORKA-001 and ORKA-002, targeting psoriasis and other inflammatory conditions. The company initiated dosing in a Phase 1 trial for ORKA-002 in the second quarter of 2025 and expects to share interim data from both programs in the coming months. The company also reported an increase in personnel-related expenses, reflecting ongoing hiring efforts to support its expanding research and development activities.

The company has undergone significant organizational changes, including a reverse recapitalization and a name change from ARCA biopharma, Inc. to Oruka Therapeutics, Inc. in August 2024. This strategic shift has positioned the company to focus on developing biologics for psoriasis and other inflammatory conditions. As of June 30, 2025, Oruka had 42.1 million weighted average shares outstanding, reflecting the impact of the reverse stock split executed in September 2024.

Looking ahead, Oruka anticipates continued increases in both research and development and general administrative expenses as it advances its clinical trials and prepares for potential commercialization of its product candidates. The company remains focused on securing additional financing to support its growth and operational needs, as it has not yet generated revenue from product sales.